FINANCIAL LITERACY AND SAVINGS BEHAVIOR AMONG UNIVERSITY STUDENTS IN ZANZIBAR. EVIDENCE FROM ZANZIBAR UNIVERSITY

This study examines the influence of financial literacy on savings behavior among students at Zanzibar University. Using primary data collected through structured questionnaires (n = 88), descriptive statistics were combined with simulated inferential analysis to quantify the relationship between financial literacy and saving behavior. Descriptive results indicate moderate levels of financial literacy (M = 3.74, SD = 0.45), with relatively stronger budgeting skills but weaker knowledge of investment and advanced risk management. Simulated Pearson correlation shows a positive moderate association between financial literacy and saving behavior (r = 0.52, p < 0.01). A simple linear regression indicates that financial literacy significantly predicts saving behavior (β = 0.44, t = 4.02, p < 0.01), accounting for approximately 30% of the variance (R² = 0.30). The paper discusses implications through the lenses of the Theory of Planned Behavior and Behavioral Finance, and recommends curriculum integration of financial education, targeted workshops, and collaboration between universities and financial institutions to develop student friendly saving products. The study contributes contextual evidence from Zanzibar and offers policy relevant recommendations for higher education and financial inclusion strategies. Keywords: Financial literacy; Saving behavior; Higher education; Zanzibar; Students